If taxes were cut by $1 trillion and the MPC were 0.95, by how much would total
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If taxes were cut by $1 trillion and the MPC were 0.95, by how much would total spending L03
(a) Increase in the first year with two spending cycles?
(b) Increase over five years, with two spending cycles per year?
(c) Increase over an infinite time period?
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Ochieng Elphinstone
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